Home Run Sports has an operating loan with CIBC. The interest rate is set at prime + 3.25%, and on the 17th of every month a payment in the amount of 4% of the current balance is automatically taken from the borrower’s chequing account. The prime rate is currently 5.75%. On March 7, Home Run Sports took a first advance of $6,000. It took additional advances of $10,000, $8,000, and $12,000 on March 28, April 17, and May 24, respectively. It made payments of $4,000, $2,500, and $10,000 on April 10, May 17, and May 29. The prime rate increased by 0.25% on March 31 and by an additional 0.25% on May 31. Create a repayment schedule and calculate the total interest paid from March 7 to June 17
Home Run Sports has an operating loan with CIBC. The interest rate is set at prime + 3.25%, and on the 17th of every month a payment in the amount of 4% of the current balance is automatically taken from the borrower’s chequing account. The prime rate is currently 5.75%. On March 7, Home Run Sports took a first advance of $6,000. It took additional advances of $10,000, $8,000, and $12,000 on March 28, April 17, and May 24, respectively. It made payments of $4,000, $2,500, and $10,000 on April 10, May 17, and May 29. The prime rate increased by 0.25% on March 31 and by an additional 0.25% on May 31. Create a repayment schedule and calculate the total interest paid from March 7 to June 17
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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| Home Run Sports has an operating loan with CIBC. The interest rate is set at prime + 3.25%, and on the 17th of every month a payment in the amount of 4% of the current balance is automatically taken from the borrower’s chequing account. The prime rate is currently 5.75%. On March 7, Home Run Sports took a first advance of $6,000. It took additional advances of $10,000, $8,000, and $12,000 on March 28, April 17, and May 24, respectively. It made payments of $4,000, $2,500, and $10,000 on April 10, May 17, and May 29. The prime rate increased by 0.25% on March 31 and by an additional 0.25% on May 31. Create a repayment schedule and calculate the total interest paid from March 7 to June 17 |
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